07-June-2025
Economy News
 
German Government Spending May Take Years to Boost Growth, Bundesbank Says
06-Jun-2025

Economic growth in Germany, the euro zone's biggest nation, will be weaker this year than already muted expectations and increased government spending will not significantly raise growth until the end of 2027, the Bundesbank said on Friday. Once the economic powerhouse of Europe, Germany has been contracting or stagnating for the third straight year now and its recovery keeps getting pushed further into the future as it struggles to overcome structural challenges. Plans by its new government to sharply increase spending on infrastructure and defence are expected to prop up growth in the longer term but the economy will struggle for now, buffeted by the U.S. administration's global trade war.

News Source:- https://money.usnews.com/investing/news/articles/2025-06-06/german-government-spending-may-take-years-to-boost-growth-bundesbank-says